IAMC-Documentation - User contributions [en]

Heat - EPPA

2022-08-23T15:33:02Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Heat
}}

While the conversions of various types of energy for heating purposes may be included in the base year input-output data, they are not considered explicitly in EPPA as the physical flows of these conversions are not included in the datasets we use.

Energy conversion - EPPA

2022-08-23T15:10:00Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy conversion
}}

The energy conversion channels considered in EPPA include: 1) various types of electricity generation that convert distinct forms of energy into electricity; 2) the conversion of crude oil or biomass into refined oil products that are used as intermediate inputs or final consumption.

Heat - EPPA

2022-08-23T15:08:23Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Heat
}}

While the conversions of various types of energy to heat may be included in the base year input-output data, they are not considered explicitly in EPPA as the physical flows of these conversions are not included in the datasets we use.

Electricity - EPPA

2022-08-23T14:58:46Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Electricity
}}

Electricity in EPPA comes from: 1) coal; 2) gas; 3) oil; 4) nuclear; 5) hydro; 6) wind; 7) solar; and 8) biomass. The energy conversion process of each type of generation is represented by a production technology that transforms different inputs into the electricity output. Some low-carbon or negative emissions generation options (e.g., gas with CCS; biomass with CCS) are not economically feasible without stringent policies, and therefore they are calibrated based on engineering data (e.g., various years of data from EIA's Annual Energy Outlook) as they have not been commercially operated currently and are not observed in the base year input-output data. Besides the economic data, physical flows of energy are also tracked to ensure that the thermal efficiency (if applicable) of each type of conversion is valid with price-driven (endogenous) or non-price-driven (exogenous) energy efficiency improvements.

Electricity - EPPA

2022-08-22T22:05:28Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Electricity
}}

Electricity in EPPA comes from: 1) coal; 2) gas; 3) oil; 4) nuclear; 5) hydro; 6) wind; 7) solar; and 8) biomass. The energy conversion process of each type of generation is represented by a production technology that transforms the corresponding energy input along with other primary or intermediate inputs into the electricity output. Some low-carbon or negative emissions generation options (e.g., gas with CCS, biomass with CCS. etc.) are not economically feasible without serious policy interventions, and therefore they are calibrated by using the engineering data (e.g., various years of data from EIA's Annual Energy Outlook) as they have not been commercially operated currently and are not observed in the base year input-output data. Besides the economic data, the physical flows of energy are also tracked to ensure that the thermal efficiency (if applicable) of the conversion is valid under the consideration of endogenous or exogenous energy efficiency improvements.

Electricity - EPPA

2022-08-22T22:00:30Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Electricity
}}

Electricity in EPPA comes from: 1) coal; 2) gas; 3) oil; 4) nuclear; 5) hydro; 6) wind; 7) solar; and 8) biomass. The energy conversion process of each type of generation is represented by a production technology that transforms the corresponding energy input along with other primary or intermediate inputs into the electricity output. Some low-carbon or negative emissions generation options (e.g., gas with CCS, biomass with CCS. etc.) are not economically feasible without serious policy interventions, and therefore they are calibrated by using the engineering data (e.g., various years of EIA data) as they have not been commercially operated currently and are not observed in the base year input-output data. Besides the economic data, the physical flows of energy are also tracked to ensure that the thermal efficiency (if applicable) of the conversion is valid under the consideration of endogenous or exogenous energy efficiency improvements.

Electricity - EPPA

2022-08-22T21:57:56Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Electricity
}}

Electricity in EPPA comes from: 1) coal; 2) gas; 3) oil; 4) nuclear; 5) hydro; 6) wind; 7) solar; and 8) biomass. The energy conversion process of each type of generation is represented by a production technology that transforms the corresponding energy input along with other primary or intermediate inputs into the electricity output. Some low-carbon or negative emissions generation options (e.g., gas with CCS, biomass with CCS. etc.) are not economically feasible without serious policy interventions, and therefore they are calibrated by using the engineering data (e.g., EIA (20xx)) as they have not been commercially operated currently and are not observed in the base year input-output data. Besides the economic data, the physical flows of energy are also tracked to ensure that the thermal efficiency (if applicable) of the conversion is valid under the consideration of endogenous or exogenous energy efficiency improvements.

Electricity - EPPA

2022-08-22T21:52:00Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Electricity
}}

Electricity in EPPA comes from: 1) coal; 2) gas; 3) oil; 4) nuclear; 5) hydro; 6) wind; 7) solar; and 8) biomass. The energy conversion process of each type of generation is represented by a production technology that transforms the corresponding energy input along with other primary or intermediate inputs into the electricity output. Some low-carbon or negative emissions generation options (e.g., gas with CCS, biomass with CCS. etc.) are not economically feasible without serious policy interventions, and therefore they are calibrated by using the engineering data (e.g., EIA (20xx)) as they have not been commercially operated currently and are not observed in the base year input-output data.

Energy conversion - EPPA

2022-08-11T20:01:25Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy conversion
}}

The energy conversion channels considered in EPPA include: 1) various types of electricity generation that convert distinct forms of energy into electricity; 2) the conversion of crude oil into refined oil products that are used as intermediate inputs or final consumption.

Non-biomass renewables - EPPA

2022-08-11T19:50:12Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Non-biomass renewables
}}

Non-biomass renewables considered in EPPA include hydro, wind, and solar. For each energy type, the supply is limited by the technology specific factor that is calibrated to meet the projections of International Energy Agency under comparable scenarios.

Non-biomass renewables - EPPA

2022-08-08T21:34:59Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Non-biomass renewables
}}

Non-biomass renewables considered in EPPA include hydro, wind, and solar. For each type of these energy, the supply is limited by the technology specific factor that is calibrated to meet the projections of International Energy Agency under comparable scenarios.

Bioenergy - EPPA

2022-08-08T21:32:05Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Bioenergy
}}

Bio-energy is derived from various crops, with the output levels determined by factor productivities and ultimately, land-use patterns, and ultimately the available land endowment. The supply of bio-energy is also limited by different types of resource competition, including those coming from meeting the food demand and from capital and labor that could be used in other sectors to seek higher returns.

Uranium and other fissile resources - EPPA

2022-08-08T21:18:20Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Uranium and other fissile resources
}}

The natural resource of nuclear power is represented by the technology specific factor, which is calibrated to match the long-term nuclear output projection of International Energy Agency under comparable scenarios.

Fossil energy resources - EPPA

2022-08-08T21:08:06Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Fossil energy resources
}}

Fossil energy resources considered in EPPA include coal, crude oil, and natural gas. For each type of fossil fuel, there is a module in EPPA that takes into account the effect of fossil fuel depletion on its price.

Energy resource endowments - EPPA

2022-08-08T20:17:11Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsEmpty=No
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy resource endowments
}}

The fossil energy endowments of EPPA are from the United States Geological Survey and World Energy Council, with details provided in Paltsev et al. (2005).<ref>Paltsev, S., J.M. Reilly, H.D. Jacoby, R.S. Eckaus, J. McFarland, M. Sarofim, M. Asadoorian and M. Babiker (2005): The MIT Emissions Prediction and Policy Analysis (EPPA) Model: Version 4. Joint Program Report Series Report 125, 72 pages (http://globalchange.mit.edu/publication/14578)</ref> Nuclear , hydro and renewables (wind and solar) are represented in a simpler fashion, focusing on the relevant resource and capital and labor. For each of the aforementioned energy type the resource is a technology specific factor (a.k.a. fixed factor) endowment specific to the technology and region. Changes in the resource over time are controlled exogenously. Details for these exogenous assumptions are presented in Paltsev et al. (2005). Besides, bio-energy is derived from distinct types of crop with output levels ultimately determined by the land resources.

Energy resource endowments - EPPA

2022-08-08T20:14:05Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsEmpty=No
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy resource endowments
}}

The fossil energy endowments of EPPA are from the United States Geological Survey and World Energy Council, with details provided in Paltsev et al. (2005).<ref>Paltsev, S., J.M. Reilly, H.D. Jacoby, R.S. Eckaus, J. McFarland, M. Sarofim, M. Asadoorian and M. Babiker (2005): The MIT Emissions Prediction and Policy Analysis (EPPA) Model: Version 4. Joint Program Report Series Report 125, 72 pages (http://globalchange.mit.edu/publication/14578)</ref> Nuclear , hydro and renewables (wind and solar) are represented in a simpler fashion, focusing on the relevant resource and capital and labor. For both of these the resource is a technology specific factor (a.k.a. fixed factor) endowment specific to the technology and region. Changes in the resource over time are controlled exogenously. Details for these exogenous assumptions are presented in Paltsev et al. (2005). Besides, bio-energy is derived from distinct types of crop with output levels ultimately determined by the land resources.

Energy resource endowments - EPPA

2022-08-08T20:13:25Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsEmpty=No
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy resource endowments
}}

The fossil energy endowments of EPPA are from the United States Geological Survey and World Energy Council, with details provided in Paltsev et al. (2005).<ref>Paltsev, S., J.M. Reilly, H.D. Jacoby, R.S. Eckaus, J. McFarland, M. Sarofim, M. Asadoorian and M. Babiker (2005): The MIT Emissions Prediction and Policy Analysis (EPPA) Model: Version 4. Joint Program Report Series Report 125, 72 pages (http://globalchange.mit.edu/publication/14578)</ref> Nuclear , hydro and renewables (wind and solar) are represented in a simpler fashion, focusing on the relevant resource and capital and labor. For both of these the resource is a technology specific factor (a.k.a. fixed factor) endowment specific to the technology and region. Changes in the resource over time are controlled exogenously. Details for these exogenous assumptions are presented in Paltsev et al. (2005). Bio-energy is derived from distinct types of crop with output levels ultimately determined by the land resources.

Energy resource endowments - EPPA

2022-08-08T20:09:57Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsEmpty=No
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy resource endowments
}}

The fossil energy endowments of EPPA are from the United States Geological Survey and World Energy Council, with details provided in Paltsev et al. (2005).<ref>Paltsev, S., J.M. Reilly, H.D. Jacoby, R.S. Eckaus, J. McFarland, M. Sarofim, M. Asadoorian and M. Babiker (2005): The MIT Emissions Prediction and Policy Analysis (EPPA) Model: Version 4. Joint Program Report Series Report 125, 72 pages (http://globalchange.mit.edu/publication/14578)</ref> Nuclear and hydro are represented in a simpler fashion, focusing on the relevant resource and capital and labor. For both of these the resource is a technology specific factor (a.k.a. fixed factor) endowment specific to the technology and region. Changes in the resource over time are controlled exogenously. Details for these exogenous assumptions are presented in Paltsev et al. (2005).

Energy resource endowments - EPPA

2022-08-08T20:06:18Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsEmpty=No
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy resource endowments
}}

The fossil energy endowments of EPPA are from the United States Geological Survey and World Energy Council, with details provided in Paltsev et al. (2005).<ref>Paltsev, S., J.M. Reilly, H.D. Jacoby, R.S. Eckaus, J. McFarland, M. Sarofim, M. Asadoorian and M. Babiker (2005): The MIT Emissions Prediction and Policy Analysis (EPPA) Model: Version 4. Joint Program Report Series Report 125, 72 pages (http://globalchange.mit.edu/publication/14578)</ref> Nuclear and hydro have much simpler structures, focusing on the relevant resource and capital and labor. For both of these the resource is a fixed factor endowment specific to the technology and region. Changes in the resource over time are controlled exogenously. More discussion of the basis for these exogenous assumptions are found in Paltsev et al. (2005).

Energy resource endowments - EPPA

2022-08-08T20:01:38Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsEmpty=No
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy resource endowments
}}

The fossil energy endowments of EPPA are from surveys of United States Geological Survey and World Energy Council, with details provided in Paltsev et al. (2005).<ref>Paltsev, S., J.M. Reilly, H.D. Jacoby, R.S. Eckaus, J. McFarland, M. Sarofim, M. Asadoorian and M. Babiker (2005): The MIT Emissions Prediction and Policy Analysis (EPPA) Model: Version 4. Joint Program Report Series Report 125, 72 pages (http://globalchange.mit.edu/publication/14578)</ref>

Energy - EPPA

2022-08-08T15:36:17Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

In standard EPPA, it considers various types of primary energy, including 1) coal, 2) crude oil, 3) gas, 4) nuclear, 5) hydro, 6) wind, 7) solar, and 8) bio-energy. Per the crude oil, it is further converted into the refined oil, which is then consumed by intermediate and final use. On the other hand, the bio-energy considered in EPPA includes the first-generation biofuels, which are made from different types of food crops, and the second-generation cellulosic biofuels derived from non-food crops and waste biomass (EPA, 2022).<ref>EPA (2022). Economics of Biofuels. The US Environmental Protection Agency. https://www.epa.gov/environmental-economics/economics-biofuels#:~:text=First%20generation%20biofuels%20are%20made,ethanol%2C%20butanol%2C%20and%20propanol. (Accessed on August 8, 2022) </ref>

There are also project-specific versions of the model that were developed to offer more options of energy sources (e.g., hydrogen (Sandoval et al., 2009)<ref>Sandoval, R., V. Karplus, S. Paltsev and J. Reilly (2009): Modeling prospects for hydrogen powered transportation through 2100. Journal of Transport Economics and Policy, 43(3): 291-316 (http://www.bath.ac.uk/e-journals/jtep/)</ref>), or higher resolution on energy types (e.g., separating crude oil into conventional crude and tar sand (Chan et al., 2012),<ref>Chan, G., J.M. Reilly, S. Paltsev, Y.-H.H. Chen (2012): The Canadian oil sands industry under carbon constraints. Energy Policy, 50: 540-550 (http://dx.doi.org/10.1016/j.enpol.2012.07.056)</ref> and disaggregating refined oil into gasoline and diesel (Choumert et al., 2006),<ref>Choumert, F., S. Paltsev and J. Reilly (2006): Improving the Refining Sector in EPPA. Joint Program Technical Note TN #9, 56 pgs (http://globalchange.mit.edu/publication/14089)</ref> Ramberg and Chen (2015)<ref>Ramberg, D.J. and Y.-H.H. Chen (2015): Updates to disaggregating the refined oil sector in EPPA: EPPA6-ROIL. Joint Program Technical Note TN #15, December, 33 p. (http://globalchange.mit.edu/publication/16271)</ref>). More details about the energy reserves and flows will be provided later.

Energy - EPPA

2022-08-08T15:34:57Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

In standard EPPA, it considers various types of primary energy, including 1) coal, 2) crude oil, 3) gas, 4) nuclear, 5) hydro, 6) wind, 7) solar, and 8) bio-energy. Per the crude oil, it is further converted into the refined oil, which is then consumed by intermediate and final use. On the other hand, the bio-energy considered in EPPA includes the first-generation biofuels, which are made from different types of food crops, and the second-generation cellulosic biofuels derived from non-food crops and waste biomass (EPA, 2022).<ref>EPA (2022). Economics of Biofuels. The US Environmental Protection Agency. https://www.epa.gov/environmental-economics/economics-biofuels#:~:text=First%20generation%20biofuels%20are%20made,ethanol%2C%20butanol%2C%20and%20propanol. (Accessed on August 8, 2022) </ref>

Depending on the research need, there are also different versions of the model that were developed to offer more options of energy sources (e.g., hydrogen (Sandoval et al., 2009)<ref>Sandoval, R., V. Karplus, S. Paltsev and J. Reilly (2009): Modeling prospects for hydrogen powered transportation through 2100. Journal of Transport Economics and Policy, 43(3): 291-316 (http://www.bath.ac.uk/e-journals/jtep/)</ref>), or higher resolution on energy types (e.g., separating crude oil into conventional crude and tar sand (Chan et al., 2012),<ref>Chan, G., J.M. Reilly, S. Paltsev, Y.-H.H. Chen (2012): The Canadian oil sands industry under carbon constraints. Energy Policy, 50: 540-550 (http://dx.doi.org/10.1016/j.enpol.2012.07.056)</ref> and disaggregating refined oil into gasoline and diesel (Choumert et al., 2006),<ref>Choumert, F., S. Paltsev and J. Reilly (2006): Improving the Refining Sector in EPPA. Joint Program Technical Note TN #9, 56 pgs (http://globalchange.mit.edu/publication/14089)</ref> Ramberg and Chen (2015)<ref>Ramberg, D.J. and Y.-H.H. Chen (2015): Updates to disaggregating the refined oil sector in EPPA: EPPA6-ROIL. Joint Program Technical Note TN #15, December, 33 p. (http://globalchange.mit.edu/publication/16271)</ref>). More details about the energy reserves and flows will be provided later.

Energy - EPPA

2022-08-08T15:29:57Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

In standard EPPA, it considers various types of primary energy, including 1) coal, 2) crude oil, 3) gas, 4) nuclear, 5) hydro, 6) wind, 7) solar, and 8) bio-energy. Per the crude oil, it is further converted into the refined oil, which is then consumed by intermediate and final use. On the other hand, the bio-energy considered in EPPA includes the first-generation biofuels, which are made from different types of food crops, and the second-generation cellulosic biofuels derived from non-food crops and waste biomass (EPA, 2022).<ref>EPA (2022). Economics of Biofuels. The US Environmental Protection Agency. https://www.epa.gov/environmental-economics/economics-biofuels#:~:text=First%20generation%20biofuels%20are%20made,ethanol%2C%20butanol%2C%20and%20propanol. (Accessed on August 8, 2022) </ref>

Depending on the research need, there are also different versions of the model that were developed to offer more options of energy sources (e.g., hydrogen (Sandoval et al., 2009).<ref>Sandoval, R., V. Karplus, S. Paltsev and J. Reilly (2009): Modeling prospects for hydrogen powered transportation through 2100. Journal of Transport Economics and Policy, 43(3): 291-316 (http://www.bath.ac.uk/e-journals/jtep/)</ref>), or higher resolution on energy types (e.g., separating crude oil into conventional crude and tar sand (Chan et al., 2012),<ref>Chan, G., J.M. Reilly, S. Paltsev, Y.-H.H. Chen (2012): The Canadian oil sands industry under carbon constraints. Energy Policy, 50: 540-550 (http://dx.doi.org/10.1016/j.enpol.2012.07.056)</ref> and disaggregating refined oil into gasoline and diesel). More details about the energy reserves and flows will be provided later.

Energy - EPPA

2022-08-08T15:26:03Z

Sergey Paltsev:

Energy - EPPA

2022-08-08T15:02:53Z

Sergey Paltsev:

Energy - EPPA

2022-08-08T15:01:29Z

Sergey Paltsev:

Energy - EPPA

2022-08-08T15:00:49Z

Sergey Paltsev:

Energy - EPPA

2022-08-06T19:10:04Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data (in physical units) from IEA (Narayanan et al., 2012),<ref>Narayanan, G., Badri, T. W. Hertel and T. L. Walmsley, 2012: GTAP 8 Data Base Documentation – Chapter 1: Introduction. Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, March (https://www.gtap.agecon.purdue.edu/resources/download/5673.pdf)</ref> we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a).<ref>International Energy Agency (IEA), 2012a: World Energy Outlook. International Energy Agency, Paris, France (https://www.iea.org/topics/world-energy-outlook).</ref>

Energy - EPPA

2022-08-06T19:08:36Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data from IEA (Narayanan et al., 2012),<ref>Narayanan, G., Badri, T. W. Hertel and T. L. Walmsley, 2012: GTAP 8 Data Base Documentation – Chapter 1: Introduction. Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, March (https://www.gtap.agecon.purdue.edu/resources/download/5673.pdf)</ref> we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a).<ref>International Energy Agency (IEA), 2012a: World Energy Outlook. International Energy Agency, Paris, France (https://www.iea.org/topics/world-energy-outlook).</ref>

Energy - EPPA

2022-08-06T19:07:56Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data from IEA (Narayanan et al., 2012),<ref>Narayanan, G., Badri, T. W. Hertel and T. L. Walmsley, 2012: GTAP 8 Data Base Documentation – Chapter 1: Introduction. Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, March (https://www.gtap.agecon.purdue.edu/resources/download/5673.pdf)</ref> we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a) <ref>International Energy Agency (IEA), 2012a: World Energy Outlook. International Energy Agency, Paris, France (https://www.iea.org/topics/world-energy-outlook).</ref>

Energy - EPPA

2022-08-06T19:06:34Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data from IEA (Narayanan et al., 2012), we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a) <ref>International Energy Agency (IEA), 2012a: World Energy Outlook. International Energy Agency, Paris, France (https://www.iea.org/topics/world-energy-outlook).</ref>

Energy - EPPA

2022-08-06T19:05:46Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data from IEA (Narayanan et al., 2012), we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a).<ref>International Energy Agency (IEA), 2012a: World Energy Outlook. International Energy Agency, Paris, France (https://www.iea.org/topics/world-energy-outlook).</ref> We also use IEA’s data of combusted CO2 emissions associated with energy consumption (IEA, 2012b).

Energy - EPPA

2022-08-06T19:03:42Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data from IEA (Narayanan et al., 2012), we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a).<ref>International Energy Agency (IEA), 2012a: World Energy Outlook. International Energy Agency, Paris, France (http://www.worldenergyoutlook.org/publications/weo-2012/).</ref> We also use IEA’s data of combusted CO2 emissions associated with energy consumption (IEA, 2012b).

Energy - EPPA

2022-08-06T18:58:35Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

While GTAP database has included energy use data from IEA (Narayanan et al., 2012), we incorporate IEA’s recent updates by recalibrating the historical energy use in the model based on the World Energy Outlook (IEA, 2012a).<><> We also use IEA’s data of combusted CO2 emissions associated with energy consumption (IEA, 2012b).

Energy - EPPA

2022-08-06T18:50:18Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy
}}

Energy - EPPA

2022-08-06T18:49:57Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Energy1
}}

Technological change - EPPA

2022-08-05T21:53:41Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Technological change
}}

Changes in technologies are captured in EPPA by: 1) price-driven ones, which are induced by changes in relative prices; 2) non-price driven ones, which are considered by the inclusion of autonomous energy efficiency improvement (AEEI). Besides, EPPA also considers a set of "backstop" technologies that may not be technically or economically feasible until later years. For instance, there are backstop generation options (e.g., advanced nuclear, gas with CCS, bioenergy with CCS) that provide low-carbon or even negative emissions alternatives to existing technologies. Even if these technologies become technically feasible, they may not be economic without more aggressive climate policies that penalize the operation of generation technologies with much larger carbon footprints.

Technological change - EPPA

2022-08-05T21:52:29Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Technological change
}}

Changes in technologies are captured in EPPA by: 1) price-driven ones, which are induced by changes in relative prices; 2) non-price driven ones, which are considered by the inclusion of autonomous energy efficiency improvement (AEEI). Besides, EPPA also considers a set of "backstop" technologies that may not be technically or economically feasible until later years. For instance, there are backstop generation options (e.g., advanced nuclear, gas with CCS, bioenergy with CCS) that provide low-carbon or even negative emissions alternatives to existing technologies. These options may not become economic without more aggressive climate policies that penalize the operation of generation technologies with much larger carbon footprints.

Technological change - EPPA

2022-08-05T21:51:39Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Technological change
}}

Changes in technologies are captured in EPPA by: 1) price-driven ones, which are induced by changes in relative prices; 2) non-price driven ones, which are considered by the inclusion of autonomous energy efficiency improvement (AEEI). Besides, EPPA also considers a set of "backstop" technologies that may not be technically or economically feasible until later years. For instance, there are backstop generation options (e.g., advanced nuclear, gas with CCS, bioenergy with CCS) that provide low-carbon or even negative emissions alternatives for existing technologies. These options may not become economic without more aggressive climate policies that penalize the operation of generation technologies with much larger carbon footprints.

Technological change - EPPA

2022-08-04T19:29:30Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Technological change
}}

Changes in technologies are captured in EPPA by

Trade - EPPA

2022-08-04T18:28:12Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Trade
}}

All goods in the model are traded in world markets with the base year data coming from the GTAP database. The Armington goods specification allows an explicit representation of bilateral trade flows, such that regions are both exporters and importers of a particular good. Bilateral trade flows involve export taxes, import tariffs, and international transport margins, all of which are explicitly represented in the model.
Electricity trade is represented but very little trade occurs in the base data, and it only occurs among regionally contiguous regions. The share-preserving nature of the CES function tends to limit expansion of electricity trade, and, realistically given difficulty of transmission, prevents trade from ever occurring among two regions if it is not in the base data.
One exception is for crude oil, which is treated as a homogeneous product in standard EPPA, subject to tariffs, export taxes, and international transport margins. Therefore, for each region, only net exports or imports of crude oil are represented. Given the transportation costs and different products/grades involved we treat coal, gas, and refined oil as Armington goods.<ref>Paltsev, S., Reilly, J., Jacoby, H., Eckaus, R., McFarland, J., Babiker, M., Paltsev, S., Reilly, J., Jacoby, H., Eckaus, R., McFarland, J., Babiker, M., 2005. The MIT emissions prediction and policy analysis (EPPA) model: version 4. MIT Joint Program Report 125. Cambridge, MA.</ref>

Trade - EPPA

2022-08-04T18:26:52Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Trade
}}

All goods in the model are traded in world markets with the base year data coming from the GTAP database. The Armington goods specification allows an explicit representation of bilateral trade flows, such that regions are both exporters and importers of a particular good. Bilateral trade flows involve export taxes, import tariffs, and international transport margins, all of which are explicitly represented in the model.
Electricity trade is represented but very little trade occurs in the base data, and it only occurs among regionally contiguous regions. The share-preserving nature of the CES function tends to limit expansion of electricity trade, and, realistically given difficulty of transmission, prevents trade from ever occurring among two regions if it is not in the base data.
Crude oil is treated as a homogeneous product in standard EPPA, subject to tariffs, export taxes, and international transport margins. Therefore, for each region, only net exports or imports of crude oil are represented. Given the transportation costs and different products/grades involved we treat coal, gas, and refined oil as Armington goods.<ref>Paltsev, S., Reilly, J., Jacoby, H., Eckaus, R., McFarland, J., Babiker, M., Paltsev, S., Reilly, J., Jacoby, H., Eckaus, R., McFarland, J., Babiker, M., 2005. The MIT emissions prediction and policy analysis (EPPA) model: version 4. MIT Joint Program Report 125. Cambridge, MA.</ref>

Trade - EPPA

2022-08-04T18:26:10Z

Sergey Paltsev:

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Trade
}}

All goods in the model are traded in world markets with the base year data coming from the GTAP database. The Armington goods specification allows an explicit representation of bilateral trade flows, such that regions are both exporters and importers of a particular good. Bilateral trade flows involve export taxes, import tariffs, and international transport margins, all of which are explicitly represented in the model.
Electricity trade is represented but very little trade occurs in the base data, and it only occurs among regionally contiguous regions. The share-preserving nature of the CES function tends to limit expansion of electricity trade, and, realistically given difficulty of transmission, prevents trade from ever occurring among two regions if it is not in the base data.
Crude oil is treated as a homogeneous product in standard EPPA, subject to tariffs, export taxes, and international transport margins. Therefore, for each region, only net exports or imports of crude oil are represented. Given the transportation costs and different products/grades involved we treat coal, gas, and refined oil as Armington goods. <ref>Paltsev, S., Reilly, J., Jacoby, H., Eckaus, R., McFarland, J., Babiker, M., Paltsev, S., Reilly, J., Jacoby, H., Eckaus, R., McFarland, J., Babiker, M., 2005. The MIT emissions prediction and policy analysis (EPPA) model: version 4. MIT Joint Program Report 125. Cambridge, MA.</ref>

Monetary instruments - EPPA

2022-08-04T16:27:49Z

Sergey Paltsev:

As briefed earlier, EPPA only considers the real variables of an economy as it focuses on long-term projections. Therefore, financial and monetary instruments are beyond the model scope and are not included in the model.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Monetary instruments
}}

Macro-economy - EPPA

2022-08-04T15:49:50Z

Sergey Paltsev:

Each period of EPPA forms an Arrow-Debreu type of model that is the basis of the general equilibrium theory. The recursive structure connects periods together through the evolution of endowments (see model scope and methods). Since the main application of EPPA is to provide long-term projections under some counterfactual scenarios rather than short-term business fluctuations, the model only focuses on the real variables of economies without considering the monetary markets and financial instruments.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Macro-economy
}}

Capital and labour markets - EPPA

2022-08-03T20:55:20Z

Sergey Paltsev:

Capital markets are region-specific. The demand for capital comes from each sector's production activity, while the supply of capital comes from investment and the remaining capital from the previous period. In each region, there is a capital market for the malleable capital, which moves freely across sectors to equalize the rate of return of capital. For the vintage (nonmalleable) capital it is locked into a sector (i.e., sector-specific) and will not be able to be traded in a capital market to search for a higher rate of return in other sectors. In EPPA, labor markets are also region-specific. Labor supply comes from the labor endowment, and labor demand is from each sector's production activity. In the standard EPPA setting, labor is homogenous and can move across sectors freely to equalize the wage rate.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Capital and labour markets
}}

Capital and labour markets - EPPA

2022-08-03T20:54:02Z

Sergey Paltsev:

Capital markets are region-specific. The demand for capital comes from each sector's production activity, while the supply of capital comes from investment and the depreciated capital from the previous period. In each region, there is a capital market for the malleable capital, which moves freely across sectors to equalize the rate of return of capital. For the vintage (nonmalleable) capital it is locked into a sector (i.e., sector-specific) and will not be able to be traded in a capital market to search for a higher rate of return in other sectors. In EPPA, labor markets are also region-specific. Labor supply comes from the labor endowment, and labor demand is from each sector's production activity. In the standard EPPA setting, labor is homogenous and can move across sectors freely to equalize the wage rate.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Capital and labour markets
}}

Capital and labour markets - EPPA

2022-08-03T19:24:43Z

Sergey Paltsev:

Capital markets are region-specific. In each region, there is a capital market for the malleable capital, which moves freely across sectors to equalize the rate of return of capital. For the vintage (nonmalleable) capital it is locked into a sector (i.e., sector-specific) and will not be able to be traded in a capital market to search for a higher rate of return in other sectors. In EPPA, labor markets are also region-specific. In the standard EPPA setting, labor is homogenous and can move across sectors freely to equalize the wage rate.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Capital and labour markets
}}

Production system and representation of economic sectors - EPPA

2022-08-03T16:34:59Z

Sergey Paltsev:

The basic production setting of EPPA is based on the Constant Elasticity of Substitution (CES) function. To account for the empirical observation that income elasticities for the demand of commodities such as food tend to decrease when an economy grows, the Stone-Geary adjustment is applied by recalibrating the subsistence consumption over time to approximate the empirical income elasticity evidence<ref>Chen, Y.-H. H., S. Paltsev, J. Reilly, J. Morris and M. Babiker (2016). Long-term economic modeling for climate change assessment. Economic Modeling, 52, 867–883.</ref>.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Production system and representation of economic sectors
}}

Production system and representation of economic sectors - EPPA

2022-08-03T16:32:30Z

Sergey Paltsev:

The basic production setting of EPPA is based on the Constant Elasticity of Substitution (CES) function. To account for the empirical observation that income elasticities for the demand of commodities such as food tend to decrease when an economy grows, the Stone-Geary adjustment is applied by recalibrating the subsistence consumption over time to approximate the empirical income elasticity evidence.

{{ModelDocumentationTemplate
|IsDocumentationOf=EPPA
|DocumentationCategory=Production system and representation of economic sectors
}}